Starlite plastic furnitureA Project feasibility report

Feasibility report encompasses of different type of analysis, ratios and projected financial statements to enhance the investors best utilization of capital in plastic molding industry

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STARLITE PLASTIC

A Project Feasibility Report on Plastic molding company

Submitted to:

Mr. Javed IqbalChairman department of

commerce The Islamia university Bahawalpur

Submitted By: Saima Rashid

04Habib-ullah

26M. Jawad

Rashid 49

M.Com 4th( Mor )

DEDICATION

Dedicated to our beloved parents who instilled in us the importance of education and hard work.

&

Also dedicated to our teachers who are a rock-solid potency for us, their motivation will empower us to face the intricacy

in future.

Acknowledgement

We would like to express our gratitude to all those who gave us

the possibility to complete this project. We want to thank the Owner of

the BOSS plastic company for giving us permission to commence this

documental work in the first instance, to do work and to use their data.

We are bound to the Honorable Mr. Imran Gul ( G.M ) BOSS PLASTIC

COMPANY GUJRANAWALA. Special thanks for Mr. Nadeem who

provided us reference and visited the factory with us, also special

thanks to Mr. Shahid Fida (Production Manager) who provided us

information & provided suggestions, encouraged us in all the time of

work and writing of this document. My colleagues as well as respectable

teachers from the Department of Commerce supported us in our work.

We want to thank them for all their help, support, interest and valuable

hints.

Especially, we would like to express special thanks to our

honorable teacher Mr.JAVED IQBAL under whose guidance we

complete this work.

TABLE OF CONTENTS

EXECUTIVE SUMMERY

Project Name 01Named 02

Location & site selection 00

Project location 00Availability of labor 00Transportation Utilities 00Office location 00Sponsors 00

Market and plant industry 00

Material and inputs 00Project Engineering 00Product Range 00Man power 00Installed Capacity of project 00Estimated Capacity during 00Estimated cost of project 00Project Investment 00Means of finance 00

Name of lenders 00Name of civil contractor 00Name of Machinery Suppliers 00Implementation Schedule 00Financial Ratios 00Introduction 00PROJECT PROFILE 00

Legal status 00Advantages 00Project brief 00Name of promoters 00

Market Analysis 00

Target Customers 00Exports of Pakistan 00Import of Pakistan 00Present Market Demand 00Present Market supply 00

Regulations 00

Growth percentage of Factories in Pakistan 00Ex- Factory price 00Retail price 00Distribution Channel 00

Technical Analysis 00Manufacturing Process 00

List of Machinery 00Material and Inputs 00Electricity & Gas, Fuel, Water 00Personal Analysis 00Requirement of staff 00

Financial Analysis 00

ANNAXTURE 00

Cost of Capital 00Estimated cost of Machinery and office equipment00Estimated cost of Building and civil work 00Estimated cost of salaries and wages 00Estimated cost of furniture and fixture 00Estimated Depreciation of assets 00

Capacity 00Product mix table

At 80% capacityAt 85% capacityAt 90% capacity

Assumption for calculation 00Raw material volume 00Detail of prices 00Power and Fuel 00Insurance 00Store and Sappers 00Manufacturing and Selling Expenses 00

SWOT Analysis. 00Reference: 00

Executive Summary

Name of Project “ Starlite Plastic Moulded Furniture”

Location & Site Selection

Following factors are taken into account while selecting the location

for project.

Project Location:

The proposed locations for the Molded Furniture is Hasilpur Road near The Islamia university, Bahawalpur (preferably). The said project may be established in industrial estate area or any other area of above said city.

Availability of Labor:

Adjacent with the area is the rural area that will provide cheaper and hardworking raw man power for production.

Transportation cost:

The proposed location is a Hasilpur Road, The Islamia university, Bahawalpur. The project will be situated over the Highway. The transportation will be easy and the cost of transportation over the country will be less varying with area to area.Office location

Registered Office will be with in the boundary of the factory.

Utilities:

The area is now becoming industrial area. A lot of factories are situated in the area. So, utilities are easily available there

Sponsors:

M. Jawad RashidSaima RashidHabib-Ullah

Market and Plant capacity

Sold initially in domestic market and with the passage of time after progress covers international market also.

Materials and inputs:

Plastic Granular (Dana), chemicals and colors.

Project Engineering:

Requirement of Plant and different Machinery for furniture.

Injection molding Machine.Chillers & Crushers Machine.Stodder GeneratorMixer Machine

Products Range:Plastic Furniture

All Model ChairsAll Model TablesBaby SwingsShoe RacksStool

Initial Stage of Plastic (RESIN)

Plastic Granular (DANA) Usage of Plastic Granular in Hooper

Man Power:

The composition of manpower will be 10 highly skilled persons to supervise technical operations, 30 skilled people to directly work on production process. 5 people will be hired as helpers.

Installed Capacity Of project:

The Plant and Machinery which we use is relatively more efficient and effective of the all types of machineries available in the market. The chosen Plant & Machinery is capable of producing units per month. 80% starting capacity is proposed.

Years 2011 2012 2013

Estimated Capacity 80% 85% 90%

Estimated cost of the Project

The cost of project has been estimated as Rs.100 million approximately including land, civil works, plant & machinery and office equipment. The plant & machinery mainly comprises of injection molding machines, cutter, crusher, mixer, chiller plant.Project Investment

Description Total Cost (Rs. 000)Fixed Investment 91,196Working Capital 13,804

Total Investment 105,000

Debt 60%

Equity 40%

Means of finance:

Name of Lenders:

The amount of loan will be taken from “BANK OF PUNJAB”. The amount of loan is Rs. 63 million. The interest @ 16% per annum.

Name of Civil Contractors:Mr. M. Yaseen. Name of Machinery Suppliers:

SUNNY CO Canal View, Harbunspura, Lahore, Punjab, PakistanPhone: 9242-6545051 Fax: 9242-6544845

Email: sunnyco@pol.com.pk

INTRODUCTION A Starlite Moulded Furniture is a Private limited proposed

to set up a Plastic furniture Manufacturing unit at Hashilpur Road, Near The Islamia university, Bahawalpur. Land measuring 4 Kanals has been required..

Due to the very low consumption as compared to developed countries and even in India, a large gap is to be filled by introducing new and cost effective products. Customers with low purchasing power don’t have any option other than plastic furniture. Middle and lower classes in Pakistan is major buyer and these classes are 65% of total population. Also there are very few players in this business

Plastic Molded is used as Lawn Furniture and outdoor restaurants furniture as substitute of wooden costly furniture. As trends are from developed countries, it was introduced in Pakistan around 1984-1985 by a Karachi based firm and used for house, school, offices etc. Then a factory was installed in Gujranwala and then with the passage of time now there are some 7 units producing plastic chairs, tables, baby products, etc day and nights. Due to low purchasing power people in Pakistan found this product cheap, associated with warranty covering the risk of consumers. The capacity to produce is also a very important edge associated to boost the business to meet immediate demands, maintain high inventory levels, variety of models and colors, etc.

P ROJECT P ROFILE:

Cost of Project:

The Estimated cost of the project as Rs.100.5 million including land, civil works, plant & machinery and office equipment. The plant & machinery mainly comprises of injection molding machines, cutter, crusher, mixer, chiller plant.

Legal Status:

The proposed legal structure of the business entity is Partnership and this financial feasibility is based on a Partnership.

Advantages:

The advantages of proposed project are as follows:i. The project will be provided cheaper products to its customers as compare to others like iron and wood. ii. To increase the preference of plastic furniture due to expensive rates of iron

and wood.iii. The cheaper rates of products and customer friendly policies may get good healthy share in market in short period.iv. To fill the demand and supply gap.

Project Brief: The sanction date of above proposed project is 17th May 2010 the legal formalities of the proposed project will be completed by 20th

June 2010

The trial once operations will take period of one months and it will end by the end of 1st March the project will start its commercial operations from the 31st March 2011.

Name of Promoters

Jawad Rashid Saima Rashid Habib-Ullah

Market Analysis

The considerable markets for the sale of the company are offices, private and public institutes, houses, hotels and restaurants, educational Institutes etc.

Target customers:

The target customers of the proposed project would be the upper, middle and lower income groups of people.

Exports of Pakistan : Exports of Pakistan last two years.

(Exports of 2006)

Countries Trade value $ Quantity (kgs)

World 149,613 35,406

Afghanistan 143,31633,916

United Arab Emirates 5,9921,418

Seychellies 16840

Canada 136 32

(Exports of 2007)

Countries Trade value $ Quantity (kgs)World 555,519 127,838

Afghanistan 372,493 85,719UAE 109,350 25,164Mauritius 65,885 14,931UK 3,682 847Switzerland 1,385 319

Imports of Pakistan:Import of Pakistan last two years

Import of 2006 :

Countries Trade value $ Quantity (kgs)World 219,410 57,705China 163,346 42,960Italy 20,284 5,335Turkey

15,1213,977

United Arab Emirates 11,394 2,997Rep. of Korea 3,566 938

Import of 2007 :

Countries Trade value $ Quantity (kgs)World

253,11453,789

China 182,533 38,790

Other Asians15,716 3,340

Italy 14,735 3,131China, Hong, Kong

8,990 1,911

Turkey 8,509 1,808

Present Market Demand:

Due to the increasing prices of wood and iron furniture, the trend of Plastic furniture has been raised. However, there are a large number of people who want to buy plastic furniture. All the brands of plastic furniture are available in the market on cheaper prices, which enhance the confidence in the minds of the general public and now, more people are attracted towards purchasing plastic furniture.

Present Market Supply:

Total numbers of molded furniture units in Pakistan are 7, which are quite low to meet the growing demand. The proposed project will serve the needs of national as well as of international customers. Initially the excessive distribution of the product in domestic market will be implemented which is capable to fill the demand supply gap.

Regulations:

There has been a tremendous growth in the Molded Furniture sector over the yeas. The total numbers of units sold during the year 2006 are estimated 750,000. The growth in terms of percentage is given in the following table:

Growth Percentage of Factories in Pakistan:

Year 2003 2007 %age Increase

No. of Factories 4 7 0.75

Ref: (Smeda.org)

Ex factory price:

Description Prices (Rs.)

All types of chairs 600

All types of tables 750

Baby Swings 400

Shoe Rack 500

Stools 600

It is assume that 10% increase annually.

Retail Price:

Description Models and prices (Rs.)All types of chairs 1. 750

  2. 700All types of tables 1. 1000

  2. 850Baby Swings 1. 500

  2. 400Shoe Racks  600

 Stool   700

Reference: Al-Hamra plastic furniture, chowk fawara Bahawalpur.

Distribution Channel

The excessive distribution of the product in local market will be implemented for this purpose 2 sales person will be hired. The supply of product is delivered to local distributor free of cost through company’s own transportation and it varies due to deals with other dealers through company’s own transportation or contract with Transportation Company depending on supply quantity.

Technical Analysis:

The partners will be actively engaged interning management of factory a part from over all management their will be skilled workers CEO, MANAGING DIRECTOR, PRODUCTION MANAGER, FINANCE MANAGER, ACCOUNTANT, TECHNICAL STAFF, FORE MAN etc, who will carry out the policies and decision made for the business.

Manufacturing Process:

The following steps are included in the manufacturing process.1) Initially mixing of color with plastic Resin. 2) Input the material into the injection molding the machine.3) Receive chairs and parts of table as output.4) Assembling and packing.

List of Machinery:

1. Injection molding Machine.2. Chillers & Crushers Machine.3. Stoder 4. Generator5. Mixer Machine

Electricity & Gas, Fuel, Water:

Electricity requirement capacity for the running of machinery is 40 kw and minimum capacity of other inputs is required.

Personal Analysis:

For the proposed project both skilled and unskilled labour is required which is available at the selected area for the project. For the training of technical staff the services of technical institution and experts are haired. A well mannered process is adopt in hiring and retaining the efficient workers.

Requirement of staff:

25 people will be employed in manufacturing area, 13 will be Employed as Administrative staff, 5 will be employed as security guards and 5 will e as helper in Godown.

Financial Analysis:

The cost of project has been estimated as Rs.30 million including land, civil works, plant & machinery and office equipment. The plant & machinery mainly comprises of injection molding machines, cutter, crusher, mixer, chiller plant. The proposed project is based on the assumption of 50% equity and 50% debt.

Implementation Schedule

The sanction date of above proposed project is 17th May

2010

the legal formalities of the proposed project will be

completed by 20th June 2010

Civil work will start as soon as the legal formalities are

fulfilled and the loaned amount is obtained.

Civil work will take the time period of approximately of 5

months and will start from the 1st August 2010

At 1st September 2010 machineries will be ordered

Delivery of machines will take 3 months and the machinery

will be at site at 5th December 2010

The machinery will be installed in at least 25 days and it will

be ready to start its trial once operations by the end of 1st

January 2010

The trial once operations will take period of one months

and it will end by the end of 1st March the project will start

its commercial operations from the 31st March 2011.

Cost of the Project Local Foreign Total

  Rs. (000) Rs. Rs.(000)

Land and its Development 6,692   6,692

Building and Civil Work 15,885   15,885

Machinery and Equipment 10,250   10,250

Engineering and Technical Fee 2,000   2,000

Insurance & clearance 3,909   3,909

Erection & Installation 2,000   2,000

Furniture and Fixture 940   940

Office Equipment 1,010   1,010

Vehicles 28,579   28,579

Pre-production Expense 2,387   2,387

Contingencies 4,000   4,000

Others Expenses 3,323   3,323

Interest During Construction 10,220   10,220

Total Fixed Cost 91,196   91,196

Initial Working Capital 13,804   13,804

Total Cost of the Project 105,000 - 105,000

Net Fixed Assets 88,809    

Means of Finance      

Debt   60% 63,000 Bank Name ( The Bank Of Punjab)      

Total Debt     63,000

Equity   40% 42,000

Total Equity and Debt     105,000

Cost of Project

Initial Networking Capital

Current Assets Amount

Cash 2,351,000

Accounts Receivable 2% of sales 2,902,750

Raw materials 1,476,450

Finish goods inventory 10%production 3,850,000

Stores & Spares 1,568,000

Advances & deposits 1,858,000

Total current asset 14,006,200

Current Liabilities

Accounts Payable 10% of Raw Material 147,645

Accrued Expenses 55,000

Total current Liabilities 202,645

NET WORKING CAPITAL 13,803,555

Financial Ratios

Gross Profit Ratio 0.24 0.33 0.4

Operating Profit Ratio 0.23 0.31 0.39

Net Profit 0.12 0.16 0.21

Payback period 2 Years

IRR 33%

Current Ratio 1.08 1.1 1.13

Cash Ratio 0.8 0.82 0.84

Quick Ratio 0.27 0.28 0.29

Debt/Equity 0.68 0.38 0.19

CapacityAt 100% capacity we can produce 1944 chairs, tables, baby swings, shoe racks and stool daily Monthly 1Product Mix Table:

PRODUCTYearly

production Monthly Daily Product MixPRODUCTION CAPACITY @

100%     in Unit  

Chairs 1,65,000 13,750 458 24%

Tables 1,50,000 12,500 416 21%

Baby Swing 1,35,000 11,250 375 19%

Shoe Rack 1,00,000 8,333 278 14%

Stools 1,50,000 12,500 417 21%

Total 7,00,000 58333 1944 100%

Production capacity level

Capacity level 80% 85% 90%

Chairs 132,000 140,250 148,500

Tables 120,000 127,500 135,000

Baby Swing 108,000 114,750 121,500

Shoe Rack 80,000 85,000 90,000

Stools 120,000 127,500 135,000

Total 560,000 595,000 630,000

Sale capacity level

Capacity level 80% 85% 90%

Chairs 105,600 133,320 145,464

Tables 96,000 121,200 132,240

Baby Swing 86,400 109,080 119,016

Shoe Rack 64,000 80,800 88,160

Stools 96,000 121,200 132,240

Total 448,000 565,600 617,120

Sales Revenue

SALAES REVENUE  Sale Price 80% 85% 90%

a) Production of Chairs 650 68,640,000 95,323,800 113,461,920

b) Porduction of Tables 750 72,000,000 99,990,000 119,016,000c) Porduction of Baby Swing 400 34,560,000 47,995,200 57,127,680d) Porduction of Shoe Rack 500 32,000,000 44,440,000 52,896,000

e) Porduction of Stools 600 57,600,000 79,992,000 95,212,800

Total   264,800 367,741 437,714

Assumptions for Calculation:

1. Operation time 2shifts/day2. Production period 330/year3. Capacity utilization 80% 1st year

85% 2nd year90% 3rd year

4. At 100% capacity

Per day production 1,944unitsPer year production 7,00,000 units

 Raw material required @ 100% capacity for all production  

a) Dana in Kg 1,500,000

b) Chamicals in Liters 100,000

Cost of Raw Material

1- COST OF RAW MATERIALS       80% 85% 90%

    Price Per KGs/Units        

a) Dana in Kg   150  

180,000,000

191,250,000

202,500,000

b) Chamicals in Liters  

50  

4,000,000

4,250,000

4,500,000

TOTAL       184,000

195,500

207,000

Cost of Labour Category Nos Salary per Annual

    Month(Rs.) Cost (Rs.000)

General Manager 1 50000 600

Technical Manager 2 48000 1152

Production Manager 1 35000 420

Processing of JuiceSection     0

-skilled 30 3500 1260

-highly skilled 10 5000 600

Helpers 8 5000 40

TOTAL     4072

Add: Fringe Benefits @ 50%   2036

TOTAL     6108

 Yearly increase in cost of labor   10%  

80% 85% 90%YEARLY LABOUR COSTS 6108 6718 7390

Cost of Manufacturing overheadMANUFACTURING OVER-HEADS          a) FIXED COSTS         (Rs.000)           -Pwer KW 500 145 145 KW/Month   870

-Insurance @   5%5%on Fixed Assets  

4

-Repairs &Maintenance:          

- Machinery @   15%15%installed cost   1538

- Building @   2%2%construction cost   318

- Vehicels @   5% 5%of cost   1429Oils and Lubricants         100Stores         1131Miscellaneous         100Total Fixed cost         5490VARIABLE COST   unint Hrs Days  Power: KW 500 11 24 330 43560Furnance Oil Litres   2000 RS 60 120      Total   43680

“Starlite Plastic Furniture Company”

“Estimated cost of land”Description    Cost

Cost of Land 4 canals @ Rs. 1,400,000  5,600,000

Registration & legal requirements 10% 560,000

Stamp duty 5% 280,000

District Council Fee of cost of land 3% 140,000

Development Charges % of cost of Land 2% 112,000

Total   6,692,000

Building & Civil WorksDescription Quantity Cost/ unit Amount

Injection Molding Machine 2 5,000,000 10,000,000

Chillers & Crushers Machine 1 1,850,000 1,850,000

Stoder 1 1,700,000 1,700,000

Generator 1 2,100,000 2,100,000

Mixer Machine 1 1,600,000 1,600,000

Generator 650 KVA 1 3,000,000 3,000,000

Office EquipmentDescription Quantity Cost/unit Amount

Computer dual coure 2.6Ghz,800Mhz1GB DDRII 10 21,250 212,500

UPS 8 10,000 80,000

Air Conditioners 7 35,000 245,000

Printer 2 30,000 60,000

Scanner 1 12,000 12,000

Fax Machine 1 15,000 15,000

Telephone Sets 15 1,500 22,500

Photocopying Machine 1 100,000 100,000

Miscellaneous 1 263,000 263,000

Total     1,010,000

“Starlite plastic Furniture Company”

“Estimated cost of Furniture”

Furniture       Description Quantity Unit cost Amount Table & Chair Set (Owner) 2 25,000 50,000 Table & Chair Set (Customer Service) 2 20,000 40,000 Table & Chair Set (Office Staff) 5 10,000 50,000 Waiting Chairs 20 8,000 160,000 Sofa Set for Customers 5 20,000 100,000 total expenses on instalation of fixtures 1 500,000 500,000 Curtains / Interior Décor     40,000 Total     940,000

VehiclesVehicles        No cost Total Toyota GLI Second Hand 1 1,319,000 1,319,000 Mehran 7 950,000 6,650,000 Buses 2 1,100,000 2,200,000 Shezhore Trucks 10 1,700,000 17,000,000 Bolan 3 470,000 1,410,000 Total     28,579,000

“Shining Star plastic Furniture Company”“Estimated cost of Building and civil work”

Building & Civil Works      

  Sq ft Rate/Sq.ft Cost

Management Block & offices 3264 1000 3,264,000

Shed on production hall 8704 800 6,963,200

Mosque, Guest Room, Kitchen 1088 700 761,600

Flooring 2176 150 326,400

Godown 6528 700 4,569,600

Total Covered Area in Sq.ft 21760   15,884,800

“Starlite plastic Furniture Company”

“Estimated cost for Admin & General Expenses”

      Salary Annual       per Month Cost

a) Administrative Salaries   Nos (Rs.) (000)

Chairman   1 50,000

600

Chief Executive   1 30,000

360

President   1 20,000

240

Financial Controller   1 15,000

180

Purchase Manager   1 10,000

120

Computer Oprater   1 10,000

120

Personal Manager   1 10,000

120

Assistants   5 4,000

240

Clerks and Typists   8 2,500

240

Driver and Peons   7 2,000

168

Sweepers   4 800

38

TOTAL       2,426

Add: Fringe Benefits @   50%   1,213

  TOTAL     3,640

b) General Expenses

Travelling & Conveyance       400

Printing & Stationary       80

Telephone, Telex, Postage       200

Rents, Rates and Taxes       150

Entertainment       120

Legal & Audit       100

Miscellaneous       100

    TOTAL   1,150

Total Admin & General Expenses     (a+b) 4,790

“Starlite plastic Furniture Company”

“Estimated cost for furniture & fixture”Furniture      

Description Quantity Unit cost Amount Table & Chair Set (Owner) 2 25,000 50,000

Table & Chair Set (Customer Service) 2 20,000 40,000

Table & Chair Set (Office Staff) 5 10,000 50,000

Waiting Chairs 20 8,000 160,000

Sofa Set for Customers 5 20,000 100,000total expenses on instalation of fixtures 1 500,000 500,000

Curtains / Interior Décor     40,000

Total     940,00

0

“Estimated depreciation of Asset”

Plant & Machinery   10250 10%   1025

Building   15884.8 5%   794.24Furniture & Fixtures   940 10%   94

Vehicles   28579 10%   2857.9

Office Equipment   1010 10%   101

TOTAL         4771

1)Detail of Prices: R.s per kgPlastic Resinn 150/Kg

Chemica. 50/unit

.2)Insurance:

5% of production block building..

3)Stores and sappers:

Stores & Spares 1,568 46,000 48,875 51,750

Estimated Income Statement

For the Year ended   2,011 2,012 2,013

operating efficiency assumed   Rs. Rs. Rs.

Sales   264,800 367,741 437,714

Cost of good Sold:.        

Raw material consumed   184,000 195,500 207,000

Labour   6,108 6,719 7,391

Manufacturing expense   40,434 42,618 44,802

Depreciation   4,771 4,771 4,771

Cost Of Goods Manufactured   235,313 249,608 263,963

Add: Beginning Inventory   - 35,297 37,441

Less: Ending Inv. 0 35,297 37,441 39,595

Cost of Goods Sold :   200,016 247,463 261,810

       

Gross Profit   64,784 120,278 175,904

Operating Expenses        

General and Admin. Expenses   4,790 5,269 5,795

Total Operating Expenses   4,790 5,269 5,795

Operating Profit   59,995 115,009 170,109

Other Income        

Sale of Wastage   200 220 242

       

Total Other Income   200 220 242

Profit before Non-Operating Expenses   60,195 115,229 170,351

Non-Operating Expenses        

Financial Exp.   2,548 8,714 6,647 Amortization of preproduction

exp.   597 597 597

Workers Participation fund (5%)   3,000 5,750 8,505

Workers Welfare Fund (2%)   1,200 2,300 3,402

Total Non-operating Exp.   7,344 17,361 19,152

Net Profit before Tax   52,850 97,868 151,199

Tax   21,140 39,147 60,480

Net Profit after Tax   31,710 58,721 90,720

Starlit Plastic Furniture co.ESTIMATED BALANCE SHEET

As on 2010 2011 2012 2013 Rs. Rs. Rs. Rs.Owners Equity & Liabilities        Capital & reserves:        Capital 42,000 42,000 42,000 42,000 Retained earning - 31,710 58,721 90,720 Sub Total 42,000 73,710 100,721 132,719 Long Term Liabilities        The bank of Punjab loan 63,000 50,400 37,800 25,200 Sub Total 63,000 50,400 37,800 25,200 Total Debt & Equity 105,000 124,110 138,520 157,919 Current liabilities        Accounts Payable 147,645 368,000 391,000 414,000 Accrued Expenses 55,000 79,440 110,322 131,314 short term Loans @ 75%   39,720 55,161 65,657 Workers Participation fund (5%) -   2,300 3,402 Current Maturity of Loan   6,300 12,600 12,600 tax payable - - - -

sub total 202,645 493,460 571,384 626,974

Total Equity & Liabilities 307,64

5 617,57

0 709,90

4 784,89

3 Assets        Fixed Assets        Fixed Assets 88,809 88,809 84,037 79,266 Less:Acc. Dep. - 4,771 4,771 4,771 Net Fixed Assets 88,809 84,037 79,266 74,495 Pre-Production Exp. 2,387 2,387 1,791 1,194 Less Amortized - 597 597 597 Net Pre-Production Exp. 2,387 1,791 1,194 597 Sub total 91,196 85,828 80,460 75,092 Current Assets        Cash 204,793 394,321 465,917 526,898 Accounts Receivable % of sales 2,903 52,960 73,548 87,543 Raw materials 1,476 1,120 1,414 1,543 Finish goods inventory % production 3,850 35,297 37,441 39,595 Stores & Spares 1,568 46,000 48,875 51,750 Advances & deposits 1,858 2,044 2,248 2,473 sub total 216,449 531,742 629,444 709,801

Total Assets 307,64

5 617,57

0 709,90

4 784,89

3

Starlit Plastic Furniture co.Cash flow statement

For the Year Ended 2,010 2,011 2,012 2,013

  Rs. Rs. Rs, Rs.

Sources        

Oprating Profit - 59,995 115,009 170,109

Add:Dep. & Amort. - 5,368 5,368 5,368

Equity 42,000      

Other Sources        

Long Term Loans 63,000      

Inc/(dec) in Current Liabilities 202,645 290,815 77,924 55,590

Total Sources 307,645 356,178 198,301 231,067

Uses        

Fixed Asset 88,809      

Pre-Production Exp. 2,387 - - -

Long Term Loans - 6,300 12,600 12,600

Re-Payment of:. -      

Financial Exp. - 2,548 8,714 6,647

Workers Participation fund (5%)   3,000 5,750 8,505

Workers Welfare Fund (2%)   1,200 2,300 3,402

Tax Paid - 21,140 39,147 60,480

Profit Distribute - - - -

Inc/(dec) in Current asset 11,655 125,766 26,106 19,377

Total 102,851 166,650 126,704 170,086

Net Cash Inflow/(Outflow) 204,793 189,527 71,597 60,981

Balance Opening - 204,793 394,321 465,917

Balance Closing 204,793 394,321 465,917 526,898

SWOT ANALYSIS

OPPORTUNITIES THREATS• Pakistan is emerging as a major

consumer market and international demand is also on the rise for plastics.

• Globalization and free trade.• Strong National Economic

indicators working for benefit of Industry.

• Linkages with BDS & Support service providers.

• Product Marketing• New and innovative products.

• Globalization and free trade.• High custom duties on Raw

Material• Local Market Penetration by

regional competitors.• High Quality Standards.

STRENGTHS WEAKNESSES

• Easy availability of cheap labor• Increasing domestic market

having demands from both low-end and high-end segments.

• Several Large Units are also present.

• Industrial Zones facilities are available.

• Location is a competitive strength.

• Acceptable as international Avenue for Exhibitions / Seminar / Foreign Buyers visit.

• Sound Cash flows

• The industry is largely unorganized and scattered.

• Professional management is not perceptible in the cluster.

• The manufacturers are dependent on imported raw material from outside.

• Lack of Research & Development efforts.

• Lack of vision / Planning.• Traditional designs and no

innovations.• Not getting benefits from support

institutions.• Nominal Export.• Weak Association

SUGGESTIONS:

• Creation of a plastics desk in the Export Promotion Bureau (EPB).

• Establishment of plastics website providing information on imports, exports, international associations, plastics processors in Pakistan.

• Export ware-houses in target markets.

• Holding national and international exhibitions.

• EPB should ensure participation of genuine exporters.

References:

BOSS Plastic Pvt. Ltd. Gujranwala.

CITIZEN Plastic Pvt. Ltd, Gujranwala.

Al-Humra Furniture Works, Bahawalpur.

Grace Computer’s, Bahawalpur.

Khan Computer’s, Bahawalpur.

Adnan & Co. Bahawalpur.

Sheikh Azam Property Dealer’s, Bahawalpur.

Dubai Copier & Fax Machine, D.I.G Chowk,

Bahawalpur.

www.Wikipedia.org

www.Smeda.org.pk.com

www.google.com

Punjab Bank, Bahawalpur

Habib Bank Ltd, Circular road branch.

Nishat ahmad

Sunny & co